Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
wrbanalysis@gmail.com (24/7)
http://twitter.com/wrbtrader (24/7)
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click on the above image to view today's performance verification
Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $6625.00 dollars or +132.50 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $6625.00 dollars
Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup
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All of my real-time posted trades involves price action concepts from the WRB Analysis free study guide, Advance WRB Analysis Tutorial Chapters 4 - 12 and the Volatility Trading Report (VTR) trade signal strategies. Analysis -----> Trade Signals
Also, posted below are direct links to information about my price action trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade and position trade. Simply, my trade method is applicable for position trading, swing trading and day trading.
##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) general volatility analysis involving WRB Analysis so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164 Price Action Analysis via Advance WRB Analysis Tutorial Chapters @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718 Analysis -----> Trade Signals
Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support (answering your questions) prior to purchasing the Volatility Trading Report (VTR). All WRB Analysis Tutorial Chapters 1 - 12 are included in the purchase of the Volatility Trading Report (VTR). Daily Trading Plan Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=285&t=3049 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions. -----------------------------
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The below summaries by Bloomberg, Briefing, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action in many trading instruments I monitor during the trading day. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events, intermarket analysis (e.g. Forex EurUsd, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index futures) while using WRB Analysis from one trade to the next trade to give me the market context for price action trading before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.
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click on the above image to view today's price action of key markets
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4:20 pm: [BRIEFING.COM] The stock market ended its first session of the week with moderate losses despite strong buying interest in the final hour of trade. Today's trade was dominated by concerns regarding slowing global growth, a decline in oil, and the ability to sustain further fed funds rate hikes. Trade saw a flight from risk assets to safe-haven investments amid growing uncertainty. The Nasdaq Composite (-1.8%) ended its day behind both the S&P 500 (-1.4%) and the Dow Jones Industrial Average (-1.1%).
Over the weekend, China released data that showed a $100 billion decline in its foreign exchange reserves, moving the reserves to their lowest level since May 2012. This weighed on global markets as they began to question how much longer the People's Bank of China can prop up the yuan. On a related note, China's Shanghai Composite is closed for the week for the Lunar New Year.
Ahead of today's session European regional indices responded to growing uncertainty of the future of the fed funds rate, which was blurred after the January Employment Situation Report revealed misses in headline metrics but could still be used to justify rate increases due to shrinking unemployment and wage growth. European markets followed our rout with a day-long decline of their own. European banks led the decline with Deutsche Bank (DB 15.54, -1.35) falling 8.0% amid concerns over the state of the bank's balance sheet and derivative exposure. The decline widened Deutsche Bank's 2016 dive to 38.7% and was so jarring that the bank came out with a press release defending its capital position, saying it has roughly EUR1 billion in 2016 payment capacity, enough to pay EUR350 million in Tier 1 coupons that will mature in April.
Oil succumbed to early selling pressure from the European session and surrendered the $30.00/bbl during U.S. pre-market trading. WTI crude was able to reclaim this level during today's session but was unable to close its pit session above that mark. WTI crude settled lower by 3.8% at $29.94/bbl. Elsewhere in commodities, gold remained on a torrid pace, extending its 2016 gain to 6.7% amid growing fears that the Fed may have committed a policy error. Today, the yellow metal climbed 3.5% to $1,197.50/ozt.
The commodity-sensitive materials sector (-2.7%) ended its day behind the other groups with financials (-2.6%) and consumer discretionary (-2.0%) following. The countercyclicals led throughout the day with telecom services (-0.4%) and consumer staples (-0.3%) showing the slimmest losses.
The financial sector mirrored concerns in Europe as the economically-sensitive group retreated following the decline in European banks. Money center banks Bank of America (BAC 12.27, -0.68) and Citigroup (C 37.81, -2.05) showed relative weakness with respective losses of 5.3% and 5.1%. Including today's performance, the group has declined 6.2% in February and 14.6% since the end of 2015.
The heavyweight technology space (-1.6%) recovered from early weakness with market cornerstones leading a rally during the final hour. Facebook (FB 99.75, -4.32), and Microsoft (MSFT 49.41, -0.75) climbed off their worst levels, but still ended lower by 4.2% and 1.5%, respectively. Yelp (YELP 16.06, -2.04) surrendered 11.3% after releasing its Q4 earnings during the session. The company reported an EPS miss on in-line revenue. Yelp also announced that CFO Rob Krolik will be stepping down by December 15 or when a replacement is found.
Biotechnology continued to show relative weakness in the health care space (-1.4%), evidenced by the 3.2% decline in the iShares Nasdaq Biotechnology ETF (IBB 248.12, -8.12).
In the commodity sensitive energy space, Chesapeake Energy (CHK 2.21, -0.85) plunged 27.8% after early reports stated that the company hired attorneys for restructuring measures. The stock rebounded slightly after the company announced that they will not be pursuing bankruptcy and that Kirkland & Ellis will advise them on ways to strengthen its balance sheet.
On the currency front, the yen rallied 0.9% against the dollar in safe-haven trade. The pair traded at 115.70 at the close of U.S. trade.
Safe-haven investments outperformed today with gold and bonds rallying. The yield on the 10-yr ended the session lower by eight basis points at 1.76%
Today's participation was true to recent form with more than a billion shares changing hands at the NYSE floor.
Investors did not receive any noteworthy data today and tomorrow's economic news will be limited to the 10:00 ET release of the Wholesale Inventories report for December (Briefing.com consensus 0.0%).
Russell 2000 -14.7% YTD
Nasdaq -14.5% YTD
S&P 500 -9.3% YTD
Dow Jones -8.0% YTD
3:40 pm: [BRIEFING.COM]
The dollar index continued to slide lower today, which helped give a boost to some commodities
However, oil prices sold off back below $30/barrel today following news that the meeting with Saudi Arabia and Venezuela didn't result in much
Ultimately, Mar crude closed the day -3.8% at $29.71/barrel
Nat gas rallied today, closing with gains of +4% to $2.14/MMBtu (Mar)
Precious metals showed impressive gains today, closing near today's highs
Mar silver rallied +4% to $15.44/oz while Apr gold ran +3.5% to $1197.90/oz
2:55 pm:
[BRIEFING.COM] As the stock market, enters its final hour of its Monday session, the major averages have drifted higher but remain deep in negative territory. At this juncture, the Nasdaq Composite (-3.1%) underperforms the S&P 500 (-2.4%).
The heavily-weighted consumer discretionary (-3.3%) and financial spaces (-3.5%) follow materials (-3.6%)on the bottom of the leaderboard.
In the technology space (-3.4%) Yelp (YELP 15.90, -2.20) has surrendered 12.2% after releasing its Q4 earnings early, reporting an EPS miss on in-line revenue. The company also announced that CFO Rob Krolik will be stepping down. Yahoo (YHOO 26.86, -1.10) trades above session lows after Bloomberg reported that Verizon (VZ 50.49, -0.47) confirmed that they gave AOL CEO Tim Armstrong a leading role in exploring a bid for Yahoo's assets.
In Treasuries the yield on the 10-yr note remains lower by ten basis points at 1.74%.
2:30 pm:
[BRIEFING.COM] The major averages have inched up off fresh session lows with the Nasdaq Composite (-3.2%) trailing the S&P 500 (-2.5%).
Countercyclical utilities (-0.6%) shows the slimmest loss while consumer staples (-0.9%) and telecom services (-1.0%) follow.
Commodity-sensitive materials (-3.8%) now shows the largest loss of the session while CF Industries (CF 26.77, -3.20) underperforms the broader sector, plummeting 10.6%. Dow Chemical (DOW 56.97, -1.92) outperforms in the space after receiving an upgrade from Susquehanna to 'Positive' from 'Neutral'. Mosaic (MOS 23.22, -1.64) shows relative weakness ahead of Thursday's earnings report before the opening bell.
Separately, CNBC is reporting that Chipotle Mexican Grill (CMG 440.35, -19.79) is attributing two norovirus outbreaks to employees of the chain. Meanwhile, the salmonella outbreak in Minnesota was linked to tomatoes. The restaurant chain is still uncertain which ingredient led to the E. coli outbreaks.
On the commodities front, WTI crude ended its pit session lower by 3.8% at $29.71/bbl.
1:55 pm:
[BRIEFING.COM] The major averages trade at fresh session lows with the tech-heavy Nasdaq (-3.2%) underperforming the S&P 500 (-2.6%) and the Dow Jones Industrial Average (-2.4%).
The commodity-sensitive materials sector (-3.8%) now trails the remaining groups with financials (-3.6%) and consumer discretionary (-3.6%) following.
In the health care space, Johnson & Johnson (JNJ 101.77, +1.23) outperforms in the group with a 1.2% gain on the day. Meanwhile, biotechnology continues to show relative weakness, evidenced by the 4.5% decline in the iShares Nasdaq Biotechnology ETF (IBB 244.61, -11.63). In the larger health care space, health care plans show relative weakness with CVS Health (CVS 89.79, -3.31) tumbling 3.5% ahead of its earnings report before tomorrow's open.
On the commodities front, WTI crude has slipped 3.1% to trade at $29.94/bbl. Gold continues to surge as it now trades higher by 3.6% at $1,198.80/ozt.
Treasuries trade at fresh session highs with the yield on the benchmark note now lower by ten basis points at 1.74%.
1:30 pm:
[BRIEFING.COM] The major averages have returned into the neighborhood of their session lows with the Nasdaq (-2.9%) remaining behind its peers.
All ten sectors trade deep in the red with materials (-3.4%) and financials (-3.3%) at the bottom of the barrel. The financial sector, for its part, has been in focus today as the economically-sensitive group retreats in the wake of aggressive selling in European bank shares. Shares of Deutsche Bank (DB 15.31, -1.58) surrendered 9.5% in Frankfurt today and the stock now trades at a 38.7% discount to its closing price from 2015 amid growing fears about the strength of DB's balance sheet and its capital position.
Including today's decline, the financial sector is already down 6.7% in February and lower by 15.1% since the end of 2015.
1:10 pm:
[BRIEFING.COM] The major averages began their week under heavy selling pressure as continued uncertainty regarding the health of the global economy and potential rate increases from the Fed weigh on the markets. At this juncture, the tech-heavy Nasdaq (-2.7%) trades behind the Dow Jones Industrial Average (-2.1%) and the S&P 500 (-2.1%)
Additional driving forces behind today's decline have included:
Volatile trade in oil
A lack of influential sector leadership; and
Uncertainty ahead of Fed Chair Janet Yellen's congressional testimony
Overnight, European markets followed Friday's rout with a day-long decline. Regional indices retreated with European banks leading the decline. For instance, Deutsche Bank (DB 15.31, -1.58) tumbled 9.5% amid growing worries regarding the strength of the bank's balance sheet and derivative exposure. Separately, oil was driven lower overnight as heavy selling action weighed on U.S. equity futures. Oil abandoned the $30.00/bbl price level contributing to the largest pre-market losses. WTI crude has since been able to reclaim this level and currently trades lower by 2.9% at $30.00/bbl.
Financials (-3.1%) and materials (-3.0%) currently jockey one another on the bottom of the leaderboard while consumer discretionary (-2.8%) follows. Meanwhile, countercyclical utilities (-0.6%) and consumer staples (-0.8%) lead.
Money center banks have shown relative weakness in the financial group with Bank of America (BAC 12.23, -0.71) and Citigroup (C 37.85, -2.00) showing losses between 5.1% and 5.5%. Meanwhile, Dow component Goldman Sachs (GS 146.40, -10.07) has declined 6.4% so far today as it posts the worst performance in the composite.
In the heavily-weighted technology space, large-caps Alphabet (GOOGL 687.41, -16.35), Facebook (FB 99.22, -4.83), and Microsoft (MSFT 48.98, -1.16) have all ticked off session lows but remain down between 2.2% and 4.6%. Meanwhile, fellow heavyweight Apple (AAPL 94.10, +0.07) outperforms after Bloomberg reported that the company is on-track to open its first retail store in India. Cognizant Technology Solutions (CTSH 54.49, -4.04) has inched up off its low but remains down 7.0% after the company guided below analyst expectations.
Amazon (AMZN 481.13, -21.00) and Home Depot (HD 111.03, -5.40) show relative weakness in the consumer discretionary space with respective declines of 4.2% and 4.6%. Meanwhile, Disney (DIS 90.68, -3.21) has slipped 3.4% ahead of its earnings release tomorrow after the close.
In the commodity-sensitive energy space (-1.0%), Chesapeake Energy (CHK 2.01, -1.05) has plunged 34.3% despite the news that company will not be pursuing bankruptcy and that Kirkland & Ellis continues to advise them on ways to strengthen its balance sheet.
In currencies, the U.S. Dollar Index has slipped 0.1% today as the dollar/yen pair sees pressure from safe-haven trade. The pair now trades at to 115.68. Continuing this trend of flight to safe-haven investments, gold has climbed 3.3% to $1,195.80/ozt.
Treasuries have surged this session along with the selloff in equities. The yield on the 10-yr note is lower by eight basis points at 1.76%.
12:25 pm:
[BRIEFING.COM] The stock market has floated higher in recent trade with the tech-heavy Nasdaq (-2.1%) trimmings its losses while the S&P 500 (-1.8%) leads.
The commodity-sensitive materials space (-2.6%) now follows financials (-2.8%) as the two groups show the largest losses of the day.
In the heavily-weighted technology space (-2.2%), Apple (AAPL 94.56, +0.54) outperforms after Bloomberg reported that the company is on-track to open its first retail store in India. Large-caps Alphabet (GOOGL 690.87, -13.59), Facebook (FB 100.13, -3.89), and Microsoft (MSFT 48.97, -1.17) have all ticked off session lows but remain down between 1.9% and 3.8%. Cognizant Technology Solutions (CTSH 54.51, -4.03) has also inch up from its low after issuing below analyst estimates EPS and revenue guidance for Q1. The high-beta chipmakers show relative weakness, evidenced by the 3.2% decline in the PHLX Semiconductor Index.
Treasuries have inched lower recently with the yield on the 10-yr note now lower by seven basis points to 1.76%.
12:00 pm:
[BRIEFING.COM] The major indices continue to show steep session losses as they hover above session lows. The Dow Jones Industrial Average (-2.1%) continues to keep pace with the S&P 500 (-2.1%) while the Nasdaq (-2.5%) underperforms.
The energy space (-1.2%) has been able to join the countercylical sectors on the top of the leaderboard as oil appears to stabilize. Currently, WTI crude trades lower by 2.0% at $30.27/bbl.
In the industrials sector (-1.8%), Boeing (BA 119.21, -3.37) has shown relative weakness, evidenced by a 2.7% decline. Ingersoll-Rand (IR 49.23, -2.11) has tumbled 4.1% ahead of the company's earnings report tomorrow before the opening bell. Elsewhere in the group, large-cap 3M (MMM 151.73, -1.74) outperforms with a loss of 1.0%.
Treasuries remain on their highs with the yield on the 10-yr note lower by nine basis points at 1.75%.
11:35 am:
[BRIEFING.COM] The major averages hover above fresh session lows with the Nasdaq Composite (-2.8%) underperforming the S&P 500 (-2.2%). On related note, the tech-heavy Nasdaq hit a fresh 52-week low at 4229.70 in recent action.
The financial sector (-3.0%) narrowly leads consumer discretionary (-3.0%) on the bottom of the leaderboard. The countercyclicals continue to lead with losses between health care (-1.6%) and utilities (-1.1%).
Consumer discretionary large-caps Amazon (AMZN 476.89, -25.24) and Home Depot (HD 110.73, -5.70) have shown relative weakness with respective declines of 4.3% and 4.9%. Meanwhile, Disney (DIS 90.87, 3.02) has slipped 3.2% ahead of its earnings release tomorrow after the close.
Separately, Chesapeake Energy (CHK 1.51, -1.55) recently stated that the company has no plans to pursue bankruptcy and that Kirkland & Ellis continues to advise them on ways to strengthen its balance sheet.
Treasuries have plunged this session as safe-haven buying continues to weigh on its yields. At this juncture, the yield on the 10-yr note is lower by eight basis points at 1.76%.
In currencies, the U.S. Dollar Index has slipped as the dollar/yen pair sees pressure from safe-haven trade, moving the pair to 115.53.
11:00 am:
[BRIEFING.COM] The stock market has ticked up in recent action as the major indices float above session lows. The Dow Jones Industrial Average (-2.0%) now trades in-line with the S&P 500 (-2.0%).
Financials (-2.8%) have slid past the consumer discretionary space (-2.6%) and energy (-2.2%) to show the steepest loss of the day. On the flipside, health care (-1.3%) has climbed ahead of telecom services (-1.6%) as both trail utilities (-0.5%) on the top of the board.
In the financial sector, money center banks have shown relative weakness in the group with Bank of America (BAC 12.26, -0.68), Citigroup (C 38.12, -1.73), and JPMorgan Chase (JPM 55.75, -2.00) showing losses between 3.3% and 5.1%. Meanwhile, Dow component Goldman Sachs (GS 149.33, -7.14) currently shows the worst performance in the composite, declining 4.8%.
On the commodities front, WTI crude has been able to reclaim the $30.00/bbl price level in recent action as it trims its loss to 1.6% at $30.41/bbl. Meanwhile, gold has climbed 3.1% this session, trading at $1,193.90/ozt.
10:40 am: [BRIEFING.COM]
The dollar index was trading higher this morning, which was weighing on commodities
WTI oil sold off back below $30/barrel following news that a meeting between Saudi and Venezuela yielded little results
However, an agreement with OPEC/non-OPEC is not off the table yet
Mar crude oil is sitting around $30 in recent trade, now -2.9% at $29.99/barrel
Natural gas futures have been strong all day... Mar nat gas is now +4.2% at $2.15/MMBtu
Precious metals are strong as well despite morning strength in the dollar index. However, the index has pulled back from today's HoD and is now flat
Both gold and silver are currently near new highs for the day. Apr gold is now +3% at $1192.40/oz, while Mar silver is +3.7% at $15.33/oz
Copper is modestly lower
10:00 am:
[BRIEFING.COM] The major averages have slid further in recent actions as they hover above session lows. At this juncture, the Nasdaq Composite (-2.3%) trades behind the S&P 500 (-1.9%).
Financials (-2.6%) have fallen behind technology (-2.2%) on the leaderboard as the pair follow commodity-sensitive energy (-2.8%).
In the energy space, Chesapeake Energy (CHK 1.83, -1.23) was halted shortly after the open as the company declined 40.2%. Chesapeake Energy has been hurt by reports that the company hired attorneys for restructuring measures. Meanwhile, energy giants Chevron (CVX 81.71, -1.17) and Exxon Mobil (XOM 79.89, -0.20) trade ahead of the broader sector. The space as a whole is dealing with continued pressure from oil as WTI crude slides 2.7% to trade at $30.05/bbl.
Treasuries continue to notch new session session highs with the yield on the 10-yr note now lower by seven basis points at 1.77%.
9:40 am:
[BRIEFING.COM] As expected, the major indices have started their trading day on a sharply lower note. Currently, the tech-heavy Nasdaq (-2.2%) outpaces the losses in the S&P 500 (-1.7%) and the Dow Jones Industrial Average (-1.5%).
All ten sectors have opened their day in negative territory with the heavily-weighted technology sector (-2.1%) and energy (-2.3%) leading the downside. On the flipside, the countercyclical sectors outperform with utilities (-0.3%), telecom services (-0.7%) showing the slimmest losses. In the health care space (-1.3%), biotechnology underperforms, evidenced by the 3.0% decline in the iShares Nasdaq Biotechnology ETF (IBB 248.73, -7.51).
In commodities, WTI crude has been able to defend the $30.00/bbl price level so far today with the energy component declining 2.2% to $30.20/bbl.
Treasuries have notched new highs in recent trade as the selloff in equities continues. The yield on the benchmark note has fallen five basis points to 1.78%.
9:13 am: [BRIEFING.COM] S&P futures vs fair value: -21.50. Nasdaq futures vs fair value: -75.50.
The stock market is on track for a sharply lower open with the S&P 500 futures trading 22 points below fair value.
Global equity markets and U.S. futures have sold off in pre-market action as Friday's job data continues to fuel uncertainty regarding the health of the U.S. economy and its ability to sustain future fed funds rate hikes. Weakness from the heavily-weighted technology sector has also weighed on futures trading. Futures pulled off their lows as WTI crude regained the $30.00/bbl price level. The energy component has drifted slightly lower in recent action and has brought futures along with it. Currently WTI crude trades lower by 1.8% at $30.33/bbl.
In corporate news, Cognizant Technology Solutions (CTSH 53.60, -4.94) has tumbled 8.4% in pre-market action after the company issued Q1 EPS and revenue guidance below analyst expectations. Outerwall (OUTR 28.50, +1.46) has climbed 5.4% after Engaged Capital confirmed a 14.1% active stake in the company. Finally, Tableau (DATA 39.45, -1.88) was downgraded at Morgan Stanley from 'Overweight' to 'Equal Weight' following Thursday night's Q1 and fulyl year 2016 guidance.
Treasuries have inched off their highs with the yield on the 10-yr note now lower by four basis points to 1.80%.
On the economic front, today's calendar is light with no data of note becoming available to investors.
8:55 am: [BRIEFING.COM] S&P futures vs fair value: -20.20. Nasdaq futures vs fair value: -72.90.
The S&P 500 futures trade 20 points below fair value.
Several markets in the Asia-Pacific region were closed on Monday in observance of Lunar New Year. China's Shanghai Composite will remain closed throughout the week while Hong Kong's Hang Seng will reopen on Thursday. Elsewhere, Japan's Nikkei labored to end the day higher by 1.1% after starting in the red. The index received support from overnight yen weakness, but the currency has climbed to a fresh high against the dollar this morning, pressuring the dollar/yen pair to 116.40. Bank of Japan Governor Haruhiko Kuroda spoke before the Japanese Parliament on Monday, but his remarks did not provide any news of note.
In economic data:
Japan's January Economy Watchers Current Index 46.6 (expected 48.5; previous 48.7) and Average Cash Earnings +0.1% year-over-year (consensus 0.7%; previous 0.0%). Separately, December Current Account surplus expanded to JPY1.64 trillion from JPY1.42 trillion (expected surplus of JPY1.52 trillion)
---Equity Markets---
Japan's Nikkei climbed 1.1% with eight sectors registering gains. Industrials (+2.0%), communications (+1.5%), utilities (+1.3%), and health care (+1.2%) paced the advance while energy (-0.2%) and financials (unch) lagged. Toyobo, Aeon, Mitsubishi Motors, Unitika, SUMCO, J Front Retailing, and Fanuc gained between 3.3% and 6.3% while Olympus, Hitachi, TDK, and Sony lost between 4.9% and 1.8%.
Hong Kong's Hang Seng was closed for Lunar New Year.
China's Shanghai Composite was closed for Lunar New Year.
Major European indices trade lower across the board with financials leading the retreat amid growing worries about the banking sector. It is worth noting that a Deutsche Bank analyst released a note over the weekend, highlighting the growing risks from negative interest rate policy adopted by the European Central Bank and the Bank of Japan.
Economic data was limited:
Eurozone February Sentix Investor Confidence 6.0 (expected 7.6; previous 9.6)
Spain's December Industrial Production +3.7% year-over-year (consensus 4.1%; last 4.3%)
---Equity Markets---
UK's FTSE trades down 1.9% with most components in the red. ITV, Arm Holdings, Ashtead Group, Inmarsat, and Rolls-Royce Holdings are down between 2.7% and 5.6%. On the flip side, a handful of miners show gains with Randgold Resources, Fresnillo, and Rio Tinto up between 0.1% and 3.6%.
France's CAC has tumbled 2.4%, sliding to its January low. ArcelorMittal is the weakest performer, down 7.2%, while Safran and Airbus Group hold respective losses of 6.4% and 4.4%. Financials also display relative weakness with BNP Paribas and Societe Generale down 3.8% and 3.4%, respectively.
Germany's DAX is lower by 2.7% amid losses in all 30 components. Infineon and Commerzbank are both down near 5.3% while Deutsche Bank has slid 3.6%. Exporters have also struggled with Volkswagen, BMW, and Daimler down between 2.2% and 3.5%.
8:30 am: [BRIEFING.COM] S&P futures vs fair value: -24.00. Nasdaq futures vs fair value: -82.60.
Equity futures remain sharply in negative territory with the S&P 500 futures currently trading 24 points below fair value. Oil continues to pressure equities as the energy component trades lower by 3.4% at $29.85/bbl.
On the corporate front, GoPro (GPRO 10.26, +0.30) has climbed 3.0% in pre-market trading after a positive Baron's profile identified the company as a possible takeover target with Under Armour (UA 75.50, -1.83) and Sony (SNE 21.41, -0.32) noted as possible suitors. GoPro also continues to see positive sentiment from Friday's announcement of collaborative patent licensing agreements with Microsoft (MSFT 49.16, -1.00).
Treasuries have ticked lower off of their pre-market highs with the yield on the 10-yr note now lower by four basis points at 1.80%.
8:05 am: [BRIEFING.COM] S&P futures vs fair value: -26.00. Nasdaq futures vs fair value: -84.40.
U.S. equity futures hover near overnight lows with the S&P 500 futures trading 26 points below fair value. Futures show steep losses after Friday's job data led to a sharp selloff as uncertainty regarding future fed fund rate hikes grew. The market could get some clarity regarding this topic on Wednesday and Thursday when Fed Chair Janet Yellen addresses Congress on the state of the country's economy. Meanwhile, oil hasn't helped matters as WTI crude has surrendered 3.5% this morning to trade at $29.80/bbl.
On the economic front, today's calendar is rather light with no economic data becoming available during today's session.
Treasuries trade on their overnight highs with the yield on the 10-yr note lower by three basis points at 1.81%.
In U.S. corporate news of note:
Apollo Education (APOL 8.90, +1.95): +28.1% following the announcement that the company will be acquired by a consortium of investors for $9.50 a share
Loews Corp (L 33.41, -2.88): -7.9% after the company reported Q4 earnings that may not be comparable to analyst estimates with an EPS loss of $0.58
GoPro (GPRO 10.31, +0.35): +3.5% following a Barron's profile that stated that the company may be a takeover target
Apple (AAPL 92.28, -1.74): -1.9% after Mizuho issued a note expressing concern for component procurement and falling smart phone demand
Reviewing overnight developments:
China's Shanghai Composite and Hong Kong's Hang Seng were closed in observation of Lunar New Year while Japan's Nikkei gained 1.1%.
In economic data:
Japan's January Economy Watchers Current Index 46.6 (expected 48.5; previous 48.7) and Average Cash Earnings +0.1% year-over-year (consensus 0.7%; previous 0.0%). Separately, December Current Account surplus expanded to JPY1.64 trillion from JPY1.42 trillion (expected surplus of JPY1.52 trillion)
In news:
In observation of Lunar New Year China's Shanghai Composite will remain closed throughout the week while Hong Kong's Hang Seng will reopen on Thursday.
The Nikkei was strengthened by overnight yen weakness, but the currency has climbed to a fresh high against the dollar this morning, pressuring the dollar/yen pair to 116.70.
European markets trade broadly lower with Germany's DAX -2.9%, France's CAC -2.6%, and the U.K.'s FTSE -2.1%.
Economic data was limited:
Eurozone February Sentix Investor Confidence 6.0 (expected 7.6; previous 9.6)
Spain's December Industrial Production +3.7% year-over-year (consensus 4.1%; last 4.3%)
In news:
A Deutsche Bank analyst released a cautionary note over the weekend, highlighting growing risks from negative interest rate policies adopted by the European Central Bank and the Bank of Japan.
6:16 am: [BRIEFING.COM] S&P futures vs fair value: -22.50. Nasdaq futures vs fair value: -65.80.
6:16 am: [BRIEFING.COM] Nikkei...17004...+184.70...+1.10%. Hang Seng...Holiday.........
6:16 am: [BRIEFING.COM] FTSE...9035.56...-250.70...-2.70%. DAX...5740.50...-107.60...-1.80%.
Special thanks to Bloomberg, Briefing, Reuters and Yahoo! Finance for their market summaries.
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M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
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